FAQ QUESTIONS
Take a look at these great common private lending questions.
1. Are there any age restrictions to this mortgage?
Answer: No. There are no age restrictions. This is an alternative to what other providers have available.
2. Are there monthly payments?
Answer: No. The accumulated payments are due at the end of the term, or when the mortgage is paid out, whichever occurs first.
3. Can I make payments towards the mortgage?
Answer: Partial payments are not permitted on this type of mortgage, but the mortgage can be paid out at any time.
4. Can this mortgage be in 2nd or 3rd position?
Answer: No. Appreciation mortgages are designed to be in 1st position only. 2nd mortgages are also not permitted.
5. What are the costs associated with an Appreciation Mortgage?
Answer: There are Legal fees, Brokerage/Lender Fees, Appraisal Costs, and a Home Inspection on a “case-by-case basis”. Legal Fees do vary depending on the amount of the mortgage, title insurance, disbursements. Brokerage/Lender Fees vary depending on the LP, but typically are 3% of the mortgage amount. Appraisal Costs for a typical residential property valued at $1,000,000 or less will range between $300.00 – $750.00 plus tax, but is determined by the Appraisal company. The Appraisal Cost is the only upfront cost. All other costs are included in the mortgage and are not an upfront cost.
6. How long are your mortgage terms?
Answer: Terms are set up for 3 and 5 years. Longer Terms may be available on exception basis and other options may be available with our other Lender Partners.
7. Is there a maximum loan amount?
Answer: Yes. Maximum of $1.5M per property, but subject to change at any time.
8. Are there mortgage affordability requirements?
Answer: Not necessarily. We use common sense. As long as your income can manage your household expenses and debts, then our Lender Partners will be comfortable.
9. Where is this lending available?
Answer: Primarily Available in British Columbia, Ontario and Alberta. Saskatchewan, and Manitoba options may be available with our other Lender Partners.
10. What is the maximum loan on a property?
Answer: The maximum loan to value consideration is 49% of the property value, depending on location and term. For example, the maximum loan on a $2M property is $960,000 ($2M x 49% = $980,000).
The maximum total loan amount is $1.5M.
Other options may be available with our other Lender Partners.
11. What type of properties are allowed?
Answer:
Residential Freehold Residences and Investment Properties in very good condition showing pride of ownership. Property must be in personal name. No Hold Co.
Eligible properties – residential, up to 4 plex, high and low rise condo’s, less than 10 acres of land. Mixed use residential/commercial, provided the residential portion of the property is greater than the commercial.
Ineligible properties…ie: co-ops, lease land, mobile homes, timeshares, hotel condo’s, vacant land, farms, agricultural zoning.
Other options may be available with our other Lender Partners.
12. I have bad credit, will I qualify?
Answer: For our Primary Lender Partner, the minimum credit score is 640. Some exceptions apply. Other options may be available with our other Lender Partners.
13. I have a previous bankruptcy, will I qualify?
Answer: Possibly. If you are 7 years discharged for previous bankruptcy or 3 years discharged from a previous consumer proposal you may qualify. Some exceptions apply. Other options may be available with our other Lender Partners.
14. Is this only for refinancing?
Answer: No. If you are looking to purchase and have 55% down payment or greater, you may qualify. If you do not have 55% down payment, other options may be available with our other Lender Partners
15. Is an appraisal required?
Answer: Yes. An appraisal is required and must be ordered by the Brokerage/Lender.
16. What is the process when obtaining a mortgage with your company.
Answer: Below is the easy and simple process after receiving a quote.
- Complete Secure Application & Consent Forms
- Complete Regulatory Compliance ID Verification
- Confirm Secure Application Details
- Provide Supporting Documents – A Secure Upload Link will be provided
- Appraisal (Must be Ordered by Brokerage/Lender) & Complete Secondary Digital ID, Fraud, and PEP AML Verification
- Sign Conditional Approval Documents
- Sign Mortgage Registration Documents with Your Lawyer
- Complete
After You have finished signing with your Lawyer, Your Lawyer will send the completed documents and required documents back to the Lender’s Lawyer for review. Once the review is complete and all items have been received, the funds will be sent to Your Lawyer. In some cases, depending on the nature of the file, funds may be deposited directly into your account.
NEED MORTGAGE FINANCE, REFINANCING,
OR A SECURED ASSET LOAN?
✔ No Initial Credit Check Inquiry (Only 30 seconds to complete)
✔ Same Day Response
✔ Fast, Efficient, & Friendly Service
✔ Private Mortgages are based primarily on Equity and the Property
✔ Bad Credit Mortgages are based primarily on Equity and the Property
✔ Traditional & Semi-Traditional Options also available
✔ Equity Based Secured Asset Loans
✔ Same Day Response
✔ Fast, Efficient, & Friendly Service
✔ Private Mortgages are based primarily on Equity and the Property
✔ Bad Credit Mortgages are based primarily on Equity and the Property
✔ Traditional & Semi-Traditional Options also available
✔ Equity Based Secured Asset Loans
(The world moves FAST, RESPECTING your time is important.)
Amansad Direct Lending Group